The Weekly Market Update
News & Insights
w/c 4 August: Global Uncertainty
GBP
The British Pound regained strength against the U.S. Dollar after a steep losing streak, helped by a shift in market sentiment following disappointing U.S. employment data. This triggered a technical rebound, offering the Pound some short-term support. However, broader concerns about the UK’s economic outlook and investor caution continue to weigh on its performance, leaving the Pound’s longer-term direction uncertain despite recent stabilization.
EUR
The Euro strengthened as investors sought safer assets following disappointing U.S. jobs data, which triggered a global market selloff. Despite early weakness tied to a controversial EU-US trade deal and mixed Eurozone growth figures, the Euro rebounded later in the week. Ultimately, its role as a Dollar alternative and safe-haven currency helped it outperform most peers, reinforcing its resilience amid rising global uncertainty and investor caution.
USD
The U.S. Dollar slipped after Friday’s weaker than expected job data reignited expectations of a Federal Reserve rate cut in September. The report signalled a cooling labour market, prompting markets to reassess the Fed’s stance despite persistent inflation. Added pressure came from concerns that Trump’s tariffs are slowing growth. Ultimately, while the Fed remains cautious, the soft data raises the odds of easing, putting the Dollar under renewed pressure.
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